American Oriental Bioengineering, Inc. Moves Corporate Headquarter to Shenzhen, in the Guangdong Province.

- Move Expected to Be Finalized by December, 2006 -

NEW YORK -- American Oriental Bioengineering, Inc. (AMEX: AOB), a leading manufacturer and distributor of plant-based pharmaceutical and nutraceutical products in China, today announced that it has commenced moving its corporate headquarter from Harbin to Shenzhen, a city situated in the southern coastal area of Guangdong province and adjacent to Hong Kong. The Company expects the move to be complete by the end of 2006.

Shenzhen was literally a fishing village 28 years ago when it was picked by Mr. Deng Xiao Ping to become the showplace of China's economic resurgence. Now Shenzhen is one of the most active and innovative cities in China. Being the first Special Economic Zone in China, companies located in Shenzhen enjoy more favorable government policies which are especially important for fast growing companies.

The relocation of AOB's headquarter to the south is both part of and supports the Company's long term growth strategy. By being based in Shenzhen; the Company can better manage its facilities in different locations, including its recent GLP acquisition, which is located adjacent to Guangdong province. The proximity of Shenzhen with the gateway city of Hong Kong will also provide additional resources to penetrate the International Market. From an acquisition perspective, senior management sees tremendous opportunities in the south western part of China where companies located in special development zones are benefiting from many favorable government policies. Shenzhen has some unique advantages compared to the Heilongjiang province in the North Eastern part of China where the Company is currently based. For example, as one of the most active and fastest growing cities in China, Shenzhen has abundant human resources available in various fields which would benefit AOB's future growth.

"Moving our corporate headquarter to Shenzhen is a very important component for our future growth," commented Mr. Tony Liu, Chairman and Chief Executive Officer of AOB. "Shenzhen is both well established and continues to dramatically grow. This is a strategic location where we can benefit from the city's abundant resources, infrastructure and favorable government policies to support the Company's long term growth plans."

About American Oriental Bioengineering Inc.

American Oriental Bioengineering, Inc. is engaged in the development and production of plant-based pharmaceutical products and plant-based nutraceutical products widely distributed throughout China. For more information, visit http://www.bioaobo.com.

This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in statements filed from time to time with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.